Having
these items on hand when you visit the mortgage company will
help speed up the application process. Usually an application
fee and the appraisal fee will have to be paid when you submit
the mortgage application. This is only done after you have
successfully negotiated on a home and have had your offer
accepted by the seller. Generally, there is no fee for pre-qualification.
After the initial meeting with the mortgage
company, you should have a general idea if you qualify for
the size and type of loan you want. The mortgage company should
let you know if you qualify for the loan within days. If you
are denied a home loan, the mortgage company must explain
the reasons. If this happens, the mortgage company will usually
discuss any options with you.
Your mortgage company will begin the work
of verifying all the information you've provided. This process
can take anywhere form one to six weeks, depending on the
type of mortgage your choose, whether you're buying a home
outside your local community, and other factors.
Within three business days after your application,
the mortgage company must give you an estimate of your closing
costs. (The closing is the actual settlement of your loan.)
You'll also get a statement that shows your estimated monthly
payment, the cost of your finance charges, and other facts
about your mortgage.
For many home buyers, this waiting period
can be nerve-wracking. So stay in touch with your mortgage
company, be prepared to answer any questions that might come
up -- and remember that mortgage companies are in the business
of making loans, not denying them.
Some homebuyers find the closing process
to be one of the most intimidating aspects of buying a home
because it's so unfamiliar. Ask your mortgage company what
to expect at your closing.
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